South Australian Consolidated Regulations South Australian Consolidated RegulationsPursuant to section 17 of the Act, a contract under which a person enters
into occupation of a residence in a retirement village (a "residence contract
) must comply with the following requirements:
(a) the
residence contract must include a statement (shown conspicuously in bold black
type) advising the person—
(i)
that he or she should seek independent legal advice about
his or her rights and duties under the contract; and
(ii)
that he or she has a right to cool-off (that is, to
rescind the contract by notice in writing and not proceed with becoming a
resident of the retirement village)—
(A) at any time within 15 business days
after the date of the contract; or
(B) at any time before the expiration of 15
business days after the date on which the last of the documents required to be
given to the person under section 17(3) of the Act is so given;
Note—
See section 17(7) and (8) of the Act.
(b) the
residence contract must, as far as possible—
(i)
be expressed plainly in gender neutral language; and
(ii)
be printed in not less than 12 point type face; and
(iii)
be set out clearly with appropriate headings and numbered
clauses;
(c) the
residence contract must include definitions of words and phrases used in the
contract (including words and phrases defined in the Act);
Note—
See, in particular, section 3 of the Act.
(d) if
the Minister has conferred an exemption from a provision of the Act in
relation to the retirement village—the residence contract must include
details about the exemption and any conditions imposed on the exemption;
(e) the
residence contract must include the following information in relation to the
contract:
(i)
the name and address of each of the parties to the
contract (and, if there is a limitation on who may, in the future, become a
party to the contract, details of the limitation);
Note—
The parties to the residence contract will be the administering authority and
the prospective resident or residents.
(ii)
the date of the contract;
(f) the
residence contract must include the following information in relation to the
retirement village scheme:
(i)
the name and location of the retirement village;
(ii)
details of the certificates of title for the land on
which the retirement village is situated, including—
(A) the Volume and Folio numbers; and
(B) the name of the owner in fee simple of
the land registered on the certificates of title; and
(C) if the land is subject to a mortgage or
charge—the name of the holder of the mortgage or charge; and
Note—
A resident of a retirement village has a right of occupation that cannot be
terminated unless the holder of a mortgage or charge that was in existence
when the Act commenced (that is, 30 June 1987) becomes entitled to vacant
possession of the residence pursuant to rights conferred by the mortgage or
charge—see section 31(1)(e) of the Act.
(D) the endorsement on the certificates of
title as required by section 33 of the Act; and
(E) any other endorsement on the
certificates of title;
(iii)
the form of tenure that will apply to the resident and
the terms and conditions of the tenure;
Example—
The form of tenure will be 1 of the following:
• community
title;
• strata title;
• lease;
• licence to
occupy;
• some other
form of tenure (with a full description).
(g) the
residence contract must include the following information in relation to the
residence to be occupied by the resident of the retirement village:
(i)
a description (in reasonable detail) of the features of
the residence;
(ii)
a plan of the residence showing significant dimensions;
(iii)
a plan of the retirement village showing the location of
the residence in the retirement village and any separate facilities allocated
to the resident;
(h) the
residence contract must include details of the facilities available in the
retirement village, including—
(i)
communal facilities available to all residents; and
(ii)
any separate facilities allocated to the resident; and
(iii)
if additional facilities are to be provided to the
resident—
(A) any work that is to be undertaken in
relation to the provision of those facilities; and
(B) the cost of the work to be undertaken;
(i)
the residence contract must include details of services
available to residents in the retirement village, including—
(i)
services provided to all residents (payment for which is
by a recurrent charge); and
(ii)
optional personal services available to residents
(payment for which would be by an additional recurrent charge), specifying any
such services to be provided to the resident;
(j) the
residence contract must include the following financial information about the
retirement village scheme:
(i)
in relation to the premium to be paid by the
resident—
(A) the amount of the premium; and
(B) the basis on which the premium is to be
paid; and
(C) the date (or, in the case of progress
payments, the dates) on which the premium is payable; and
(D) how and on what basis the premium will
be refunded;
(ii)
the terms and conditions under which the premium will be
refunded and the basis on which the refund will be calculated;
Note—
The residence contract must include the following details:
(a) the
date from which the refund will be calculated (that is, the date on which the
resident was given access to occupy the residence—the
"date of occupation");
(b) the
date up to which the refund will be calculated (that is, the date on which the
resident ceases to reside in the retirement village—the
"date of termination");
(c) the
formula for calculating the refund;
(d) the
fees and charges that may be deducted from the amount of the refund;
(e) the
conditions that must be met before the refund will be made;
Examples—
1 The residence must be resold/relicensed and the
administering authority must receive a deposit/premium in relation to the
residence.
2 The trustees of the retirement village scheme
must approve the amount of the refund.
(f)
when, how and to whom the refund will be made.
See, also, section 21 of the Act in relation to repayment of so much of the
premium as a resident of a retirement village may require to secure entry into
residential care at an aged care facility.
(iii)
in relation to recurrent charges payable by the
resident—
(A) the amount of each recurrent charge and
how that amount is calculated; and
(B) the reason for each recurrent charge;
and
(C) when each recurrent charge becomes
payable; and
(D) if a recurrent charge may be varied by
the administering authority—
• the date on
which the charge was last varied; and
• the estimated
date on which the charge will next be varied; and
• the period of
notice to be given to the resident before a variation will come into force;
and
(E) recurrent charges (if any) that will
continue to be payable if the resident is absent or leaves the retirement
village;
Note—
Recurrent charges may include—
• the
maintenance charge; and
• charges for
additional personal services provided to the resident (such as, for example, a
cleaning service or the provision of meals).
(iv)
when, in relation to the retirement village scheme, the
financial year begins and ends;
(v)
in relation to funds established by the administering
authority to which the resident will be required to contribute—
(A) the purpose of each fund; and
(B) the amount required to be contributed
by the resident to each fund; and
(C) when the resident will be required to
contribute to each fund;
(k) the
residence contract must include the following information in relation to the
resident's settling-in period:
(i)
when the settling-in period begins and ends; and
(ii)
the fees and charges for which the resident will be
responsible during the settling-in period; and
(iii)
what refunds the resident will be entitled to receive if
he or she terminates the contract during the settling-in period;
Note—
See section 3(2)(b) and section 31(3) to (6) of the Act.
(l) the
residence contract must include the following information in relation to any
development of the retirement village being undertaken, or planned, as at the
date of the contract:
(i)
the number (if any) of residences under construction or
to be constructed and the estimated completion date;
(ii)
any communal facilities under construction or to be
constructed and the estimated completion date;
(iii)
any landscaping being undertaken or to be undertaken and
the estimated completion date;
(iv)
if development approval is required under the Development
Act 1993 —details of the approvals granted and any conditions of
the approvals;
(v)
details of consultation with residents that must occur
before any future redevelopment of the retirement village may commence;
Note—
See section 25 of the Act.
(m) the
residence contract must include procedures for the resolution of a dispute
within the retirement village;
Note—
See Schedule 1 clause 7 (Code of conduct to be observed by administering
authorities of retirement villages) and section 32 of the Act.
(n) the
residence contract must include the following information in relation to the
trustee:
(i)
the name and address of the trustee;
(ii)
the terms and conditions on which the trustee has been
appointed for the purposes of the retirement village scheme (insofar as any
such trustee is involved in holding money paid by the resident on trust, or is
available or responsible to represent the interests of the resident);
(iii)
the assistance available to residents from the trustee;
(iv)
how the trustee's fees are to be paid;
(o) the
residence contract must include the action to be taken to terminate the
contract and the steps (if any) that a party agrees to undertake after a
termination;
Note—
See section 31 of the Act.
(p) the
residence contract must include any other information that is agreed between
the parties.
Note—
The Act sets out various rights that a person has on entering into a residence
contract that cannot be excluded by the contract.